Monte Paschi to sign for state aid in very short time

Published February 09, 2013

| Reuters

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BERGAMO – Italy's troubled lender Monte dei Paschi is ready to clear the way to receiving 3.9 billion euros ($5.2 billion) in state loans in a "very short time", the bank's Chairman Alessandro Profumo said on Saturday.

"The bank will sign the 'Monti bond' in a very short time," said Profumo talking with journalists at the sidelines of a business conference, referring to the special bonds that will be used to provide the loans from the state.

Monte Paschi Chief Executive Fabrizio Viola said the bank was currently not in talks with counterparts to restructure - "Santorini" and "Alexandria" - two of the derivatives trades at the heart of a fraud probe into the former management.

Italy's third biggest lender said on Wednesday that losses linked to three problematic derivative trades, including "Santorini" and "Alexandria", totalled 730 million euros as it sought to draw a line under a scandal over risky financial transactions.

(Reporting by Francesca Landini and Gianluca Semeraro; editing by James Mackenzie)